Kasowitz Faces Legal Battle Amid Allegations of Financial Mismanagement from Ex-Partner Herschmann

Marc Kasowitz, the founder of the law firm Kasowitz, is facing a lawsuit from former partner Eric Herschmann, who alleges that Kasowitz misrepresented the firm’s financial health and owes him millions in unpaid compensation. Herschmann, who rejoined the firm in 2021 after serving as a legal adviser to former President Donald Trump, claims he was induced to return based on assurances of the firm’s financial stability and promises of substantial compensation. He alleges that Kasowitz concealed declining profits and funded partner distributions through debt, leading to significant financial mismanagement. Herschmann is seeking an accounting of the firm’s finances and recovery of unpaid compensation. Kasowitz has dismissed the lawsuit as “a false document filled with inaccuracies and misstatements of fact” and indicated that the matter should be resolved through confidential arbitration, as stipulated in the firm’s partnership agreement. This legal action follows a series of departures from the firm, including founding partner Dan Benson, who left in June to start his own practice, prompting the firm to change its name from Kasowitz Benson Torres to simply Kasowitz. The case is Herschmann v. Marc Kasowitz and Kasowitz LLP, filed in New York State Supreme Court.